What happens if someone doesn't respond to a demand letter?
Asked by: Prof. Patricia Sanford IV | Last update: August 6, 2025Score: 4.1/5 (59 votes)
Ignoring a demand letter is not a smart move. If the other party doesn't respond within the given timeframe, your lawyer might take the case to court. Remember, the demand letter is crucial evidence, as it shows you tried to resolve the matter reasonably and fairly before heading to court.
What are the consequences of ignoring a demand letter?
Consequences of Ignoring a Demand Letter
Increasing the likelihood of a lawsuit and potential financial losses: Not addressing the issue can lead to a small claims court case or other legal action, resulting in additional costs.
What to do if someone doesn't respond to your demand letter?
If a person fails to respond to a demand letter, your only next option is to file a lawsuit against that individual. In your case, you will want to include evidence that you sent the demand letter, such as a copy and state that the defendant failed to respond and, therefore, you had no choice but to file the lawsuit.
Can a demand letter backfire?
Before you draft your own demand letter and fire it off thinking your actions will result in getting paid, getting the services you contracted for, demanding the satisfaction that you were expecting, consider that writing your own demand letter can backfire badly!
How long should I wait for a response to a demand letter?
The timeline for receiving a settlement response to a demand letter can vary depending on several factors. In some cases, you may receive a response within a few weeks, while in others, it may take several months. Insurance companies need time to review your claim, gather evidence, and assess liability.
Why might a defendant employer not respond to a demand letter?
Do you legally have to respond to a demand letter?
Although you're generally not legally bound to send a reply before the response deadline (or at all), the referenced time frame can give you some insight as to the obligee's eagerness to move forward with the adversarial process.
How powerful is a demand letter?
Demand letters show the owner that you're serious about getting paid. Sending a demand letter prior to litigation is a sign of good faith in the eyes of the law. In court, the language in your demand letter can support your case. Successful demand letters significantly reduce the cost of getting paid.
Can an employer ignore a demand letter?
Disregarding a litigation demand letter can have severe consequences for businesses, potentially escalating the claim. Ignoring a demand letter may signal to the sender that the recipient is unwilling to engage in good-faith settlement negotiations, prompting the sender to pursue more aggressive legal actions.
What are the risks of a demand letter?
Potential Legal Risks
Demand letters that include threats of litigation, accusations of infringement, recitations of the legal requirements for infringement, and/or a refusal for the marks to co-exist may increase the risk that the trademark holder will be subject to a declaratory judgment action.
What not to say in a demand letter?
Don't Be Threatening
While the dispute of payment may have become personal, a demand letter is meant to encourage a desirable resolution. The use of threatening or insulting language may embolden the owner into not paying when they otherwise would have. And remember, a judge may one day look at this letter in court.
How much do lawyers charge for a demand letter?
Hiring a lawyer to draft a demand letter will incur fees because it requires the time of a licensed attorney to complete the task. ContractsCounsel's marketplace data shows the average demand letter costs to be $380.00 across all states and industries.
How long until I get my settlement check after I agree?
It depends. Usually within 2-3 weeks of signing the release, money should be in if settlement funds are coming from an insurance company. But if you have a government health insurer, work comp lien, or its a settlement against a government entity, it can take some time to finalize those.
What are the disadvantages of a letter of demand?
However, sending a letter of demand can have its disadvantages. Depending on the situation, the other party may feel threatened and respond negatively, or they may not respond at all. They might engage a lawyer, or they might even start legal action against you.
How do you enforce a demand letter?
Send your demand letter by registered mail. This gives you a paper trail, so you can prove you sent it. And follow up with enforcement afterwards. Small claims court has proved an excellent way for me to go after deadbeats.
Can a demand letter be considered harassment?
Demand letters are sometimes used as a form of harassment and/or intimidation.
What is the final letter of demand?
The Final Demand Letter should include the following elements: Clear Statement of the Debt or Obligation: The amount due or action required must be clearly stated, with specific references to any agreements or contracts that support the claim.
How can a demand letter backfire?
Demand letters are valuable tools for creating records, dispute resolution, and much more. But, they can backfire and lead to liability for the sender and even its attorney for threats or demands that are legally improper.
How long after a demand letter can I expect settlement?
How Long After the Demand Letter Can I Expect Settlement? Your personal injury lawyer will likely ask the insurance carrier to respond to the demand letter by a specific date. They might give 30 days or 45 days for the insurer to review everything and reply with their answer.
How successful is a letter of demand?
A demand letter shows the other party you are serious about taking legal action to remedy the dispute. Simply sending the demand letter may end the need for further litigation. According to NOLO, "In as many as one-third of all disputes, your demand letter will catalyze settlement".
Why do employers settle out of court?
Fewer Legal Fees
Since settlements happen faster and are less complex than litigation, they usually require fewer legal fees for both parties. Many employers will offer more money than originally proposed in a settlement offer to avoid the expensive costs of going to trial.
Do people take demand letters seriously?
Are Demand Letters Serious? Demand letters are absolutely serious, and you should take them seriously. The fact that someone is investing time and resources to send you a formal letter to demand something from you is evidence of their seriousness.
Why do people ignore demand letters?
Here are 5 reasons why someone would ignore your demand letter: They don't believe you have a legitimate claim. Your demands are unreasonable or too high. You included threats or disparaging language in your demand letter.
Is a demand letter a threat?
Demand letters are valuable tools for creating records, dispute resolution, and much more. But, they can backfire and lead to liability for the sender and even its attorney for threats or demands that are legally improper.
What is the next step after sending a letter of demand?
After sending a demand letter, the first step is to wait for a response by the deadline you provided. If your demand letter worked, you should expect a settlement within a couple of weeks. However, the time you have to wait for a settlement may vary based on different factors.
Do I need to respond to a demand letter?
Don't Ignore a Demand Letter!
Typically, demand letters require a written reply within a specified timeframe. Failure to respond may prompt the sender, often a law firm, to pursue legal action against you by filing in court.